North and Standard Club members approve creation of marine insurance major NorthStandard
Approval is given to merging North and Standard Club after separate member meetings resoundingly back plans to create a market-leading global marine insurer and one of the largest providers of mutual cover in the maritime industries.
Both clubs held special general meetings on May 27th to approve the proposal to merge the two organisations into a single mutual insurer.
This gives the greenlight to establish NorthStandard as a unified club in time for 20th February 2023, next year’s renewal date. The merger remains subject to the approval of all the appropriate regulatory authorities.
The merger will create one of the largest providers of mutual cover in the maritime industries with consolidated annual premiums of around US$750 million. With 300 years of shared P&I heritage, NorthStandard will also bring together some of the most respected expert teams in maritime risk management. The new organisation will be jointly led by Jeremy Grose, Standard Club CEO, and Paul Jennings, CEO at North.
“This is an excellent outcome and a huge moment for our industry,” said Grose. “NorthStandard will be a major new force in marine insurance, delivering the resilience members need from their P&I partners to meet the challenges and competitive landscape of a changing shipping world. We are delighted that our proposal has received such strong backing from the members of both clubs.”
“For the merger to proceed, it was critical that we secured their recognition of the proposal’s positive outcomes for continued service excellence, as well as the opportunities brought by diversified product lines, scale economies and global reach.” NorthStandard will bring together two unique advocates of mutuality working within the International Group of P&I Clubs, whose complementary cultures, ambitions and approaches would work together to deliver added value for all Members, said Grose.
“North members expressed overwhelming support for the merger based on the tangible benefits for shipowners that the consolidation will bring,” commented Jennings. “Members welcomed the proposal on the grounds that it would reinforce stability and strengthen competition in the P&I sector and encourage innovation and drive further product diversification.
“A larger organisation will also attract and retain even more of the best talent to ensure that NorthStandard delivers the highest levels of service and support for members,” Jennings concluded.
Source: North P&I Club